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Old 01-05-2006, 08:25 AM
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jmjj215 jmjj215 is offline
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Default Re: Info on part-time business

Quote:
More time for doing other things
That depends on the business. My side business is extremely time consuming. I'd hate to calc the hourly wage.

Beware of the home office deduction - that's a big IRS flag.

To avoid (not evade) a lot of the self-employment tax you can incorporate as an S corp. Then you pay yourself a salary, which is self-employment taxable. Any extra profit flows through to you w/o the self-employment tax. Just make sure your salary is "reasonable" (and that's up for you to decide, but another big audit flag is to pay yourself a very low salary to avoid most of the SE tax).

Quote:
Most importantly.... SEP-IRAs... 25% of your net income is fed tax deductible. up to 43,000 a year -- none of this 3k, 4k crap.
I'll have to look into that a bit.
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